Mudarabah, loaned items and deposits

Ibrahim (may Allah have mercy on him) said that the one who takes something on hire, the one who borrows a thing and the one who keeps a thing in trust will not be liable as long as they do not go against (the agreed terms).

Al-Sha'bi (may Allah have mercy on him) said that if the trustee, the one who borrows a thing and the mustabdi' (the one who takes goods to trade with) go against (the agreed terms), they will be liable.

Ibrahim (may Allah have mercy on him) said that if you forbid the mudarib (working partner) to buy such and such a thing and he buys it nevertheless, he will be liable.

And Hammad said: The two of them are to give the profit in charity.

Tawus said that the mudarib (working partner) is a trustee even if he goes against you.

Sayyiduna Umar (may Allah be pleased with him) held Sayyiduna Anas (may Allah be pleased with him) liable for four thousand that he held as mudarabah.

Al-Hasan (may Allah have mercy on him) said that if the mudarib (working partner) goes against you (in the agreed terms), he is still a trustee.

Sayyiduna Anas (may Allah be pleased with him) said: Six thousand was left with me in trust and it was lost. Sayyiduna Umar (may Allah be pleased with him) said to me: Did you suffer any other loss along with it? I said: No. So he held me liable.

Sayyiduna Abu Hurayrah (may Allah be pleased with him) said that if the owner of the capital stipulates to the mudarib (working partner): You shall not go down into the bed of a valley, and he then goes down (and the wealth is destroyed), he will be liable.

Sayyiduna Ali (may Allah be pleased with him) said that whoever divides the profit bears no liability.

Al-Hasan said that if a mudarib (working partner) gives the money to someone else (other than the intended person), he will not be liable, because he is a trustee.

Shurayh (may Allah have mercy on him) said that if the terms (agreed upon) in a trust or a hire are violated, he will be liable.

Al-Sha'bi (may Allah have mercy on him) said: If the owner of the capital tells the mudarib (working partner): Do not go beyond such-and-such a place, and he goes anyway, he is liable.

Something similar is reported from al-Sha'bi (may Allah have mercy on him).

Ibn Sirin (may Allah have mercy on him) said: Do not place any condition on the mudarib (working partner), for I fear that he will go against it, and the harm of that will fall on him and on you.

A man asked al-Zuhri (may Allah have mercy on him) about one who was given capital for mudarabah and was told: Do not go out of the city, and then he went. He said: There is no liability on him.

Abu Qilabah said: If conditions are placed on the mudarib (working partner) that he must not exceed, and he exceeds them anyway, he is liable.

Iyas (may Allah have mercy on him) said: He is liable.

Ata (may Allah have mercy on him) said: If he is forbidden to go out of the city and he goes out anyway, he is liable.

Ibrahim (may Allah have mercy on him) said: If the trustee, the borrower and the mustabdi' (one who takes goods for trade) act against the agreed conditions, they are liable.

Sayyiduna Jabir (may Allah be pleased with him) said that Sayyiduna Abu Bakr (may Allah be pleased with him) did not hold anyone liable for a deposit held in trust.

It is narrated from Abdullah bin Ukaym that a man entrusted a deposit to another man, and it perished with him, and Sayyiduna Umar (may Allah be pleased with him) did not hold him liable.

Al-Zuhri (may Allah have mercy on him) said: There is no liability on the one holding a deposit in trust or on the one borrowing something, unless they come under accusation (of having destroyed it themselves), in which case there is liability.